Hong Kong
CNN
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Shares in SMIC, China’s largest contract semiconductor maker, fell sharply on Thursday after two U.S. lawmakers called on the White House to further restrict export sales to the company.
This comment came after Huawei Technologies Introducing Mate 60 Proa Chinese-made smartphone equipped with an advanced chip that appears to be made by SMIC.
Last week’s announcement follows sweeping U.S. efforts to restrict China’s access to foreign chip technology and to understand how Shanghai-based SMIC would have the capacity to manufacture such chips. This shocked industry experts.
TechInsights is a Canadian-based research organization specializing in semiconductors. revealed Shortly after its launch, it was revealed that the smartphone is equipped with a new 5G Kirin 9000 series processor developed by SMIC specifically for Huawei.
Jefferies analysts said in a research note Tuesday that this is a “major technological advance for China.”
The developments have raised concerns among analysts that the US-China tech war could accelerate in the near future.
Shen Qilai/Bloomberg/Getty Images
Semiconductor Manufacturing International Corporation (SMIC) headquarters in Shanghai, China, Tuesday, March 23, 2021.
US Representative Mike Gallagher, chairman of the US House of Representatives China Committee, on Wednesday asked the US Department of Commerce to halt all technology exports to Huawei and SMIC, according to reports. Reuters.
Gallagher was quoted as saying that SMIC may have violated US sanctions because the chip likely could not have been manufactured without US technology.
“The time has come to end all U.S. technology exports to both Huawei and SMIC to make it clear that companies that ignore U.S. laws and undermine our national security will be cut off from our technology,” he said. I’ve come,” he said.
Shares of SMIC, which stands for Semiconductor Manufacturing International Corporation, fell 8.3% in Shanghai and 7.6% in Hong Kong on Thursday. Huahong Semiconductor, China’s second-largest chip foundry, fell 5.8%.
Texas Republican Michael McCaul, chairman of the House Foreign Affairs Committee, is concerned that China may be seeking a “monopoly” in the production of advanced computer chips, Reuters reported.
“We’ve talked a lot about advanced semiconductor chips, but we also need to look at legacy,” he says. reportedlyrefers to older computer chip technology that is not subject to export controls.
“I think China is also trying to dominate the market share of legacy semiconductor chips. And I think that’s part of the discussion we’re going to have,” he said.
Chinese state media touted the development as proof that the country had “defeated US sanctions” and “achieved technological independence” in advanced chip manufacturing.
Chinese internet meme makers have even appointed US Secretary of Commerce Gina Raimondo as the unofficial brand ambassador for the Mate 60 series.
meme The idea that U.S. sanctions implemented and enforced by the U.S. Department of Commerce may have indirectly led to the launch of new mobile phones, as China’s domestic companies had to take advantage of available technology. are making fun of
Raimondo visited China last week to coincide with the launch of the mobile phone. The meme spreads rapidly online, State broadcaster CCTV reported..
Before Thursday, Hong Kong’s SMIC shares had risen more than 20% in less than two weeks on investor optimism. Hua Hong Semiconductor rose 11%.
CNN has reached out to Gallagher and McCall’s offices for comment, but has not yet received a response.
Huawei is Added to blacklist In May 2019, the U.S. Department of Commerce issued a warning citing national security concerns. That means companies must apply for a US export license to supply technology to Huawei.
There was also SMIC put on the same list In 2020, he was concerned that U.S. officials could use U.S. technology to support the Chinese military. SMIC denies any ties to the Chinese military.
“The fact that China has made great strides in the world… [semiconductor] “Advances in technology will spark further debate in the United States about the effectiveness of sanctions.” Jefferies analyst.
They expect the Biden administration to tighten the chip embargo on China introduced in October 2022 in the coming months, further restricting China’s access to advanced U.S. semiconductors.
“Overall, the US-China tech war is likely to intensify,” they said.